Key Highlights
- Temasek, Singapore’s sovereign wealth fund, is preparing to make direct investments in Samsung and SK Hynix, according to reports
- Shares of both Korean semiconductor manufacturers climbed more than 7%, driving the KOSPI index up over 4%
- The move represents Temasek’s inaugural direct investment in South Korean equities
- The fund reportedly believes memory chip manufacturers in the AI ecosystem remain undervalued
- Regional chip stocks received additional support from positive earnings releases by CoreWeave and Super Micro
Shares of Samsung Electronics and SK Hynix experienced significant gains on Wednesday following reports from South Korean media that Temasek, Singapore’s state-backed investment vehicle, intends to take positions in both semiconductor companies.
According to Asia Business Daily, Temasek has reached out to Korean government officials to coordinate the investment timeline. The publication indicated that the fund plans to execute the investment through its in-house investment team, bypassing external fund managers.
Stock Prices Climb More Than 7%
Both Samsung and SK Hynix saw their share prices surge beyond 7% during trading in Korea. The benchmark KOSPI index advanced more than 4% during the session.
The two companies have delivered exceptional performance throughout 2026. Year-to-date gains exceed 100% for each stock, fueled by robust demand for memory semiconductors deployed in artificial intelligence applications.
Wednesday’s surge follows a challenging period for both manufacturers. During July, the stocks experienced substantial declines as market participants questioned the sustainability of AI infrastructure investment. This uncertainty prompted some investors to liquidate leveraged holdings.
A recovery trend has emerged in recent weeks. Market observers attribute part of this rebound to anticipation that both corporations will enhance shareholder distributions to bolster their valuations.
Fund Views Memory Sector as Underappreciated
With a net portfolio valued at approximately S$518 billion, equivalent to roughly $404.5 billion, Temasek ranks among the world’s most substantial sovereign wealth funds.
According to reports, the investment organization considers memory chip producers undervalued relative to other segments of the AI supply chain. This potential transaction would represent Temasek’s first direct equity investment in South Korean companies.
Temasek has not issued any official statement in response to inquiries from Bloomberg and other media organizations.
The investment news amplified an already strong performance across Asian semiconductor equities. Japanese companies including Advantest, Kioxia Holdings, and Murata Manufacturing posted gains ranging from 0.8% to 3.5%.
China’s Semiconductor Manufacturing International registered a 4% increase. TSMC advanced 0.8% in Taipei trading.
The regional rally received further support from encouraging earnings announcements in the United States. CoreWeave and Super Micro both delivered strong results, strengthening investor conviction that AI-driven chip demand continues to expand.
Semiconductor manufacturers faced headwinds throughout much of June as market participants became concerned about excessive valuations across the sector. The early August recovery has shifted investor sentiment.
Kioxia’s financial results provided encouraging signals. CoreWeave’s performance also helped alleviate worries regarding a potential deceleration in AI-related capital expenditure.
For Samsung and SK Hynix specifically, the Temasek news provided investors with renewed justification for accumulating shares. A direct investment from a prominent sovereign wealth fund would signal strong confidence in the companies’ long-term prospects.
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